U.S. Fines Weimar Bond Dealer $60,500

Published: January 29, 1998

WASHINGTON, Jan. 28—
A Michigan brokerage house that sold investors some defaulted Weimar Republic bonds has been ordered by a Federal judge to pay $60,500 for failing to cooperate with a Securities and Exchange Commission inquiry into the bonds.

J. W. Korth & Company refused to give regulators the serial numbers for about $145,000 in bonds, which it says were probably stolen from Jewish bondholders by the Nazis years after their issuance. Judge Ursula Ungaro-Benages in Miami said Korth defied a court order to disclose the serial numbers.

Mr. Korth said his firm intended to appeal the fine, adding, ''We think the decision's unfair.

The bonds are part of two series of gold certificates issued by the Weimar Republic in 1924 and 1930. Germany defaulted on the bonds during World War II, then exchanged some bonds for new ones after the war.